A shift occurs in the supply curve for salt when:
a. the price of salt increases.
b. improvements are made in the production process.
c. salt is found to be associated with high blood pressure.
d. consumers expect the price of salt to increase in the future.
b
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The meaning of "terms of trade" is
A) the price of a country's exports divided by the price of its imports. B) the amount of exports sold by a country. C) the price conditions bargained for in international markets. D) the quantities of imports received in free trade. E) the tariffs in place between two trading countries.
When the free rider problem is present in a market:
A. what people pay often does not reflect the real value they put on a good. B. the good will likely be over consumed. C. the good is rival in consumption. D. the good is easily excludable.
For every gift that A gives to B from the first to the tenth gift, A receives a net benefit of $10. The additional cost to A of giving an additional gift is constant at $5. It follows that A's marginal benefit curve for giving gifts to B is ___________________ (assuming that we place "marginal benefits" on the vertical axis and "number of gifts" on the horizontal axis)
A) downward-sloping over units 1 -10. B) upward-sloping over units 1-10. C) horizontal over units 1-10. D) vertical over units 1-10. E) There is not enough information provided to answer the question.
Effects of a subsidy
What will be an ideal response?